Southwestern Energy To Exit Fayetteville - Quick Facts

(RTTNews) - Southwestern Energy Company (SWN) announced a definitive agreement with Flywheel Energy, LLC, a private company backed by Kayne Private Energy Income Funds, to sell its Fayetteville Shale E&P and related midstream gathering assets for $1.865 billion in cash. Following the closing, Southwestern Energy will have pro-forma debt of approximately $2.3 billion. A portion of proceeds will be used to replace cash flow that would otherwise have been generated by the Fayetteville assets and reinvested into SWN's liquids-rich assets in West Virginia.

As a result of the transaction, Southwestern Energy expects additional annualized interest and organizational cost reductions of $60-75 million. This is incremental to the $110 million in annualized interest and G&A savings announced in the second quarter.

Southwestern Energy Company anticipates deploying up to six rigs in 2019, generating total production growth of 8-12% and liquids growth of 15-25%. For 2020, the company anticipates total production growth in the mid-teens and liquids growth in the mid-twenties.